Chapter 44
FINANCIAL MANAGEMENT : Taking control of a company

M&A deals tend to come in waves. Their determinants are macroeconomic (globalisation, deregulation, technological evolution), microeconomic (search for size, for new markets, gains of time) or human (succession issues).

The art of negotiation consists of allocating the value of the synergies expected from a merger or acquisition between the buyer and the seller. There are two basic methods of conducting the negotiations:

Regardless of the chosen procedure, certain elements are common to every deal:

Stake-building can be the first step to acquiring control over a listed company. But it can be slow and faces the requirement of declaring the crossing of thresholds.

A public offer is the usual way to acquire a listed company. It is based on two fundamental principles: transparency and equal treatment of shareholders. It can be in cash or in shares, hostile or friendly, voluntary or mandatory.

In each country, the acquisition of listed companies is conducted under the supervision of a stock market watchdog.